Essays on Buying and Selling of Admiral Group PLC Shares in the London Stock Exchange Market Case Study

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The paper "Buying and Selling of Admiral Group PLC Shares in the London Stock Exchange Market" is a perfect example of a marketing case study. The paper reports on the reasons for the choice of the shares of the mentioned company and lessons learned on the process of buying and selling of the stock. Keywords: Shares, stock, market Trading Portfolio Introduction Shares are defined as financial instruments whereby one acquires a stake of ownership of a company through their purchase. The returns are not fixed or guaranteed. A shareholder acquires benefits and voting rights. Choice of Company The first step before buying shares of a company, it is fundamental that the strength and stability of the industry in which the company belongs are established and determined as strong (McChrystal, 2013).

The shares chosen in this case were as a result of carrying out a fundamental analysis of the company shares, its position in the market, and its current management which portrayed the company to be growing and promising more future dividends to the owners. The choice of the shares was also informed by an understanding that the stock return = share price growth + dividend yield.

For instance, the shares chosen are for a company that is currently paying a 5 % dividend yield with an annual appreciation of 5 % and a total return of 10 %. The management of the company ensures that the high quality of all the company affairs is maintained. This has ensured that the dividends last and grow at a good rate that is satisfying to the stakeholders (Hobson, 2011). A list of candidate stock was started with. There are large and leading London companies with most of them demonstrating characteristics of long-term performance.

This list of stocks is critical as it is being used as the stock market benchmark. Every stock is compared against other stocks in the list to determine and choose the best that will offer the best dividends to the investors. The best stock should at least have a market capitalization of 100 million, a dividend yield of at least 150 % of the industry average, more than 15 % of return on Equity over an average of a five year period.

References

Blakey, G. G. (2008). A history of the London stock market, 1945-2007. Petersfield: Harriman House.

Hobson, R. (2011). How to build a share portfolio: A practical guide to selecting and monitoring a portfolio of shares. Petersfield, Hampshire: Harriman House Ltd.

Hennessy, E. (2001). Coffee house to cyber market: 200 years of the London Stock Exchange. London: Ebury Press.

McChrystal, S. A. (2013). My share of the task: A memoir. New York: Portfolio/Penguin.

Techmark: The London Stock Exchange market for innovative technology companies. (2000). London: HS Financial Pub.

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